What Is the Difference Between a PEST and PESTLE Analysis?

The PESTEL analysis model, also called macro-environment analysis, is an effective tool for analyzing the macro environment. It can not only analyze the external environment, but also identify all forces that have an impact on the organization. It is a method of investigating external influence factors of an organization. Each letter represents a factor and can be divided into 6 factors: Political, Economic, Social, Technical, and Environmental. Factors (Environmental) and Legal Factors (Legal).

PESTEL analysis model

6 factors:

(1) Political factors: refers to the political forces and related policies, laws, and regulations that have actual and potential effects on the organization's business activities.

(2)

Political factors affecting corporate strategy

· Government control and deregulation

· Government procurement scale and policy

· Special tariffs

· Number of patents

·Sino-US relations

Financial and

According to PESTEL's framework model, the following six macro factors are analyzed one by one around the beer brewing industry, and then the structural driving factors that affect the industry and the fundamental interactions between these macro factors and their mutual constraints are explored. .

Political Factors

From the perspective of political factors, China's and the world's

PESTEL analysis model

The political situation in which the governance situation has basically stabilized. "Peace and development" are the two main themes of the contemporary world and the common aspirations of the people of all countries in the world. Around this time, China has vigorously developed its trade partnerships with other countries. With the entry of the WTO, China s tariff barriers have been eliminated one by one, and foreign products have immediately entered China. According to incomplete statistics, nearly 40 foreign brands of beer are produced domestically, and the output accounts for 4.3% of the country. The protection and encouragement policies for the beer industry have now disappeared, and with it the challenges of foreign brands of beer, which have caused a certain impact on China's beer industry; at the same time, there are certain favorable factors. The reduction of import tariffs allows the beer industry to expand the choice of beer raw materials and advanced equipment. For example, imported barley is usually of good quality and easy to control technology, which reduces the cost of production. By introducing advanced foreign equipment, it is conducive to improving beer production. Brewing level, in addition, it is also conducive to the direction and entry of China's beer products International markets.

economic factors

The business cycle is a process that reflects the reciprocal change of the economy from prosperity-slow (decline)-low tide-recovery (high). According to relevant statistical data, China is currently in the third stage of the economic cycle. From the Development Research Center of the State Council to predict China s economic growth rate from 2001 to 2020, the results show that from 2001 to 2010, China s GDP growth rate It reached 7.9%. Therefore, it can be predicted that China will continue to have stable and sustainable economic development in the next few years. The sound development of China s economic environment indicates that the beer industry will continue to maintain a strong momentum of development.

Since the early 1990s, due to the sluggish operation of state-owned enterprises, a large number of laid-off and unemployed people have appeared in the state-owned enterprises. The employment problem has become a "bottleneck" restricting China's economic and social development. Unemployment has not affected the development of the beer industry. On the contrary, because it is a cheap consumer product, beer has become a tool for people to vent when they are upset, a stimulant when they are happy, an effective medium for social occasions and when they talk about their hearts. Therefore, due to the unique effect of beer compatibility and inclusion (happiness and sadness sharing and health care effect), it is not very obvious that the consumer group is affected by the economy. It can be seen that the beer interest of the mass consumer group is established and cultivated and properly adjusted. Guidance and publicity are vital and enduring.

Socio-cultural factors

(1) Changes in lifestyle

Beer first appeared in ancient Egypt and Mesopotamia (present-day Iraq). Its production method was introduced into Germany from Egypt via North Africa, the Iberian Peninsula, and France. In southern Germany, beer manufacturing has developed unprecedentedly, and it has been developed by German Beer technicians spread beer craft to the world. After the reform and opening up, influenced by European and Western cultures, people s food culture began to move closer to the west, and beer entered China. People have never known about beer try to try indispensable when dining and entertainment today, The profound charm of beer culture can be seen. With the in-depth exploration of the efficacy of beer, it is known that beer not only contains amino acids required by the human body, but also is rich in vitamin B2, niacin and minerals, hence the name "liquid bread". In addition, beer has risen widely on campus and has become an important part of campus communication culture. Therefore, the age-appropriate consumer group of beer has gradually extended and has now expanded to 18 to 60-year-olds. It can be seen that the beer industry is strong Consumer groups.

(2) Impact of population growth process and distribution

First of all, from the perspective of China s population growth process and trends, since the country s vigorous implementation of family planning in the early 1970s, China s birth rate and natural growth rate have declined significantly, but the population growth determined by the huge population size accumulated in history The amount is still considerable. According to relevant data, in 2000, China s population aged 18 to 60 reached 816 million, which is 2.15 times that of 1964. In the next 30 years, the proportion of this population to the total population will remain Above 60%. Since the age structure of China's population shows a pattern of "small on both ends and large on the middle", the prospect of beer-aged consumers is still very optimistic.

Second, looking at the changes in the global birth rate and fertility rate, the overall trend is from high to low. The decline in birth rates and fertility rates in developed countries began as early as the Industrial Revolution. By the end of the last century, the fertility rate of the population had fallen below the replacement level, and even a negative population growth occurred. Therefore, the focus of future world population growth will be concentrated on developing countries and countries. area. In 2000, 80.66% of the world's population was distributed in developing regions (such as Nigeria, Pakistan and other countries). This proportion will rise to 87.33% in 2050, and the population burden will increase. Therefore, from the future world population distribution trends and beer Looking at the characteristics of low cost, health care and fashion, the future development trend of this industry is to advance to developing countries.

Technological factors

From the perspective of scientific and technological factors, "one of the most dramatic factors that change the destiny of mankind is technology". The development of an enterprise cannot be separated from technology. Without technology and product innovation, there will be no growth and progress of the enterprise and no future of the enterprise. The reason why "Yanjing" dares to challenge the world's beer giants in the market is precisely because they rely on technology and product innovation. It can be seen that the relationship between the beer industry and technology is not inferior to the relationship between IT industry and technology. However, from The overall status of China's breweries seems to be still low, small in scale, high in material consumption, and low in efficiency. The water consumption per ton of beer produced is 8 to 40 cubic meters, and the corresponding displacement is 7 to 35. Between cubic meters, and the water consumption per ton of beer in developed countries is only 5-10 cubic meters, indicating that there is still a certain gap between the advanced level of Chinese breweries and that of foreign developed countries. Therefore, continuous technological innovation, technological progress, saving limited resources, and strengthening environmental protection are the development trends of the beer manufacturing industry.

Environmental factors

From the analysis of natural factors, most industrial production activities inevitably damage the quality of the natural environment. Nowadays, from the United Nations to governments around the world, they have paid enough attention to environmental pollution and formulated relevant laws to stop them. This is not only the objective need to protect the global environment, but also the general trend of "harmonious coexistence between man and nature". For the beer brewing industry, its environmental factors are extremely relevant and cannot be ignored. At present, the national discharge standard for assessing the wastewater quality of the beer industry is GB8978-1996 "Integrated Wastewater Discharge Standard". There is no separate pollutant discharge standard for the beer industry. With the strengthening of pollution control and governance, the State Environmental Protection Administration and the State The General Administration of Quality Supervision and Quarantine has jointly released industrial wastewater discharge standards that comply with the characteristics of wastewater discharge from the beer industry-the "Beer Industry" in light of the characteristics of large wastewater discharge in the beer industry, high organic pollution concentrations, serious environmental pollution, and relatively few emission factors. The Pollutant Discharge Standard has been implemented since January 1, 2006, and it is a mandatory standard. The earth is our common home, environmental protection is the theme of the times of worldwide concern, and any industry must do a good job in the long-term management of environmental protection, especially in the beer industry. Based on this, Tianhu Company invested in 2000 6.5 million sewage treatment projects were constructed, which effectively solved the problem of sewage discharge.

Legal factor

From the analysis of legal factors, the law has played a role in ensuring, supervising, and restricting the industry's standardization and development. With the development of society and economy, companies have frequent business transactions, and the market environment they are in has become increasingly complex. Potential legal problems. If legal problems that exist in the business process of a company cannot be detected in a timely manner, they will "accumulate troubles." Once an outbreak occurs, the company may suffer major losses as a result. According to the General Administration of Quality Supervision, Inspection and Quarantine, the "Food Safety Law" will be promulgated at the end of this year, which requires the industry to start with the development of high technology and adopt advanced techniques and testing methods. The "Beer Formaldehyde Incident" last year reflected the beer industry's The neglect of laws and regulations has brought a certain negative impact to the entire domestic beer industry.

In short, political stability and the political propositions and actions it adopts will directly bring different degrees of positive and negative effects to the overall economic environment. Different stages of the economic level and different speeds of economic development will also affect its The social, cultural, and lifestyle aspects of the economy have had varying degrees of impact. The economy has provided material guarantees for the development of science and technology. At the same time, technological innovation has promoted the continuous development of the economy. Relevant legislation, as well as related laws and regulations in known areas, and environmental protection are fundamental to the sustainable development of mankind and the world economy.